Aluminum Casting Market Exhibits a Near Two-fold Growth

Large-scale automotive productions in emerging markets across Asia are a predominant contributor to the aluminum castings market. Bouyed by their superior temperature resistance and extraordinary tensile strength, aluminum castings remain in demand, particularly in the construction industry.

A new study of Fact.MR projects the net revenue pool of aluminum castings market to expand 1.8 times through the forecast period (2019-2029). Moreover, increasing uptake of aluminum castings in a number of sports utility vehicles is supplementing the market growth, according to the report.

Large-scale automotive productions in emerging markets across Asia are a predominant contributor to the aluminum castings market.

Key Takeaways

Die casting process remains highly preferred by manufacturers across the globe. In terms of end-use, transportation accounts for leading share in the global aluminum castings market. East Asia accounts for one-third of total demand for aluminum castings. Europe will hold a substantial revenue share in the global aluminum castings market over the forecast period.

Key Drivers

Stringent statutory regulations imposed by governments are favoring the growth of aluminum castings market. Soaring demand for lightweight and ductile automotive components is boosting the sales of aluminum castings. Enhanced product durability and energy-efficiency associated with aluminum castings will bode well for the market.

Proliferation of digital start-ups in Asia is supporting the growth of aluminum castings market in the region. Enormous demand for aluminum castings in electric vehicles is stimulating market growth.

Key Impediments: Aluminum Castings Market

Relatively high price point of aluminum castings is limiting its adoption across the globe, thereby hindering market growth. Aluminium components have slightly lower strength than steel which is retraining market growth.

The automotive industry where aluminum castings are predominantly used is experiencing massive shocks in view of the COVID-19 outbreak. Oversupply from China, travel restrictions, and reduced workforce are major concerns hampering growth of aluminum castings market. However, experts suggest that the market would be able to recover from the recent stagnation in demand by the end of 2020. Even though a strong economic rebound is still far away, the market will inch towards the end of Q2 2020. As of now, logistics is the biggest issue which may exacerbate China’s supply surplus.

Ram Mohan is part of Fact.MR’s digital marketing team. He leads a group of passionate digital marketing executives who employ a mix of innovative and tried-and-tested approaches to serve factmr’s multipronged digital marketing goals, including but not limited to, brand awareness, lead generation, influencer marketing, thought leadership, and growth hacking. Ram Mohan has a total experience of over four years, however, he believes that agility and awareness are keys to succeeding in a field as evolving as digital marketing.https://www.factmr.com/